Accenture report reveals only partially successful cloud migrations
Among respondents to a survey by the consulting firm, two-thirds of large enterprises say they’re not realizing the full benefits of their migration to the cloud.
The Lowdown: What’s holding them back? The usual suspects – security and the complexity of changing business and operational models.
The Details: For its latest report, “Perspectives on Cloud Outcomes: Expectations vs. Reality,” Accenture surveyed 200 senior IT professionals at large businesses around the world. While most (96%) said they’ve partially achieved their desired cloud outcomes, only about one-third, on average, said they’ve fully achieved their goals when it comes to cost, speed, business enablement, and service levels.
Other key findings:
• The most oft-cited barriers to full achievement of cloud outcomes were security and compliance risk (65%), complexity of business and organizational change (55%), legacy infrastructure and/or application sprawl (43%), and lack of cloud skills within the organization (42%).
• Nearly nine out of 10 respondents (87%) said they would consider recruiting a managed service provider to run their cloud services. The top two reasons for going with an MSP: access to the right skills and lower costs.
• Cloud model matters. Only 28% of private cloud users said they’ve fully achieved their expected outcomes via the cloud. Among public cloud users, 42% said the same, and the number was 38% for hybrid cloud users. Private cloud users struggle most with achieving desired cost-savings and service-level improvements.
The Buzz: “Like most new technologies, capturing the intended benefits of cloud takes time; there is a learning curve influenced by many variables and barriers. Taking your cloud program to the next level isn’t something anyone can do overnight — clients need to approach it strategically with a trusted partner to access deep expertise, show measurable business value, and expedite digital transformation,” said Kishore Durg, senior managing director of Accenture Cloud for Technology Services. “Also, if IT departments fail to showcase direct business outcomes from their cloud journeys, they risk becoming less relevant and losing out to emerging business functions, like the office of the chief data officer, that are better able to use cloud technologies to enable rapid innovation.
“Our Accenture research also shows that when it comes to cloud technology, the more clients consume, the greater value they’ll see in return,” Kishore added. “Specifically, as clients expand their use of cloud applications and footprint across different functions, divisions, and geographies, they’ll increase the areas to which the technology can bring value. In short, the more widespread your adoption, the greater the value lift, creating an upward curve in return on investment.”